The Bank of Ghana has announced that it has appointed audit firm, KPMG as administrator for uniBank.
This means that the central bank has taken over the assets and management of uniBank.
According to the Governor of the Bank of Ghana, Dr. Ernest Addison uniBank is currently insolvent.
Dr. Ernest Addison at a press conference stated KPMG has been appointed to manage the bank to save it from collapse.
In a press statement, BoG states that “UniBank’s problems are part of the legacy issues in the financial sector attributed to weak economic growth and poor corporate governance and risk management practices. It will be recalled that UniBank was one of nine banks identified after the asset quality review exercise undertaken in 2016, to be significantly undercapitalized with a CAR of 4.75%.
As part of efforts to recapitalize the bank, it submitted capital restoration plans to the Bank of Ghana which it implemented to build up its capital to 7.7% in August 2017. Subsequent reviews of UniBank’s books by Bank of Ghana’s supervision teams showed that the bank had not reported the state of its loan book accurately.
Consequently, by October 2017, its CAR was estimated at negative 12.5 %, making it technically insolvent. By December 2017, its CAR had dropped further to negative 24%. The bank has failed to submit its monthly returns to the Bank of Ghana for January and February 2018, and as a result Bank of Ghana has no evidence to suggest that its CAR has been restored to the regulatory minimum of 10%.”